Depreciation

Question 1

Straight Lime Method Formula (depreciation per year)

Answer 1

(Cost of Asset - Estimated residual (scrap or salvage) sale proceeds) / Number of years expected use of asset

OR

Percentage based on original cost

Question 2

Reducing Balance Method

Answer 2

percentage based on NBV

Question 3

provision for depreciation have what type of balances

Answer 3

CREDIT